Did you know that over a million solar panel systems were installed in the past two years? Solar energy is becoming one of the most popular features in residential homes, especially new builds.
When you decide to install solar panels, you can choose between solar panel buying and solar panel leasing. Have you ever decided whether to go with a solar panel lease vs buy? Here is a brief guide to the differences between the two.
Financial Investment for Solar Panel
Solar panels can seem out of reach if you do not have a lot of money to invest upfront. When you buy solar panels, you can pay for them all at once. Expect an investment of several thousand dollars to start out.
However, if you are interested in solar panel buying, you may still be able to afford it even if you do not have the full cost. Many companies offer solar financing, where you can make payments on a monthly basis toward full ownership.
When it comes to solar panel leasing, you do not have to have nearly as much money to invest. You will pay monthly, similar to the financing option, to have access to your solar panels.
Since you start saving money when you get the latest solar panel installation, you will not not be spending as much overall when you lease solar panels. However, you might still be in the red if your monthly payment exceeds the amount you take off your energy bill.
Solar Tax Credits
One of the biggest benefits, when you buy solar panels, is that you can take advantage of tax credits and rebates. One of the most popular credits is the federal solar energy tax credit.
As long as the installation was finished during the tax year, you can claim a huge portion of your solar panel system costs as a tax write-off. You may also be able to benefit from state and local rebates and tax incentives as well. However, if you lease your solar panel system, you cannot claim it on your taxes. The solar tax credit is one of the most important federal tax breaks available to homeowners and businesses. It allows you to claim a tax credit for the full cost of installing solar energy systems on your property. This credit can be worth up to $2,500 per system.
There are a few things you need to know before you take advantage of this tax break:
You must have a solar energy system installed on your property to qualify for the solar tax credit. This includes both rooftop and ground-mounted systems.
The solar tax credit is specific to federal taxes, so it won’t affect your state or local taxes.
You can only claim the solar tax credit once per year, and you can’t carry over any unused credits from year to year.
The solar tax credit isn’t just for small businesses or wealthy homeowners – everyone can benefit from this break if they’re willing to invest in renewable energy sources!
When you buy solar panels, you are the official owner of the system. Once you stop making monthly payments if you have a payment plan, you will still be able to keep your solar panels.
Leased solar panels are the property of a third party. Therefore, you do not have any ownership over them and you are paying for continuous use.
Solar Panel Lease vs Buy
If you want to know the difference between solar panel lease vs buy, you should not have to make an uninformed decision. With this guide, you can weigh the options and pick what is best for your budget and solar needs.
Would you like to learn more about all of the innovative ways that you can change your home? Take a look at the Technology section of our site for more ideas and inspiration.